Threat of Blockchain Prompts New Strategy for Germany’s SAP

Nearly 400 miles from its German headquarters, in the computer-science hotbed of Potsdam, SAP SE’s engineers are trying to head off the latest challenge to its software empire: the blockchain.

The World Economic Forum has identified blockchain technology, which underpins the virtual currency bitcoin, as one of six computing “mega-trends” shaping society in the coming decade. In a paper issued last year, the WEF estimated 10 percent of global GDP could be stored in blockchains by 2027.

Companies including Deloitte LLP, JPMorgan Chase & Co. and Toyota Motor Corp. are looking into using, or experimenting with the de-centralized blockchain system, which threatens to supplant some enterprise planning software created by market-leader SAP and others.

“The potential for disruption is huge,” said Juergen Mueller, SAP’s chief innovation officer, who joined the Walldorf-based company three years ago. “If we would not move, this would be a huge threat.”

About 50,000 businesses run SAP’s financial and operations planning software, so ingrained that companies design manufacturing, delivery and accounting processes around it. The software’s organizing principle is a central ledger of transactions, and SAP’s 44 years’ experience processing that data means customers in banking, auto making, agriculture and energy are willing to pay millions of dollars to keep it running.

SAP is writing specialized software for customers in banking, farming, energy, health care and media so they can connect blockchains to its Hana Cloud Platform, which provides a database and applications as online services so customers can add new functions to their SAP systems. It’s working with a variety of blockchain technologies, including the system that supports bitcoin, and with Ethereum, an alternative blockchain technology.

Post navigation

Trading Prices

Kibo Lottery

Alex Tapscott: “Blockchain Revolution” | Talks at Google

Ethereum Explained – Video

Blockchain Explained – Video

Blockchain explained on BBC – Video

Reading List

“What a spectacular book. Mind-blowing in its expansiveness and profundity. It makes me think we’re at one of those times in technological, economic, and social history where the sky is the limit.”
—Steve Wozniak, cofounder, Apple Computer and chief scientist, Prime Data

“The blockchain is one of the most fundamental inventions in the history of computer science. Read Blockchain Revolution to understand its profound implications.”
—Marc Andreessen, cofounder, Netscape and Andreessen Horowitz

“Everywhere thoughtful people are trying to understand this revolutionary technology and how it might change the world. Team Tapscott has stepped up and written the book we’ve been waiting for.”
—Dan Schulman, CEO, Paypal

Join us

We are looking for great and talented writers to join our team. Whether you are an experienced journalist or editor who is looking to publish specific articles around Blockchain and Ethereum, a freelance tech journalist or you are still studying and looking to write with us on a permanent basis at the side of your day to day life, as long as you are passionate about Ethereum and Blockchain technology and have a talent for writing, we`d love to speak with you. Please reach out to us via below email form (subject: “Editor_your name”) and we are getting back to you asap to discuss.